Property Valuation
What is 'economic rent' versus 'contract rent' in a Delaware income property analysis?
AEconomic rent is the current lease rate; contract rent is the market rate
BEconomic rent is the market rate a property could command; contract rent is the actual rent per the lease✓ Correct
CBoth are the same; the terms are interchangeable
DEconomic rent applies to commercial properties; contract rent applies to residential leases
Explanation
Economic (market) rent is the rent a property could command in the current open market. Contract rent is the actual rent specified in the lease.
Related Delaware Property Valuation Questions
- What is 'incurable depreciation' in a Delaware appraisal?
- What does 'effective age' mean in a Delaware appraisal?
- An arm's-length transaction means:
- In Delaware, who is qualified to perform a formal real estate appraisal for a federally related transaction?
- What does 'arm's length transaction' mean in a Delaware real estate appraisal?
- What is a 'subject property' in a Delaware appraisal?
- What is a 'price per square foot' metric used for in Delaware real estate?
- A Delaware appraisal determines the value of a residential property at $350,000. The bank's loan officer believes the value should be $390,000. Who has the authority to change the appraised value?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →